Which of the Following Statements Is True of External Costs

question 356

Multiple Choice

Which of the following statements is true of external costs?

• A) External costs should not be corrected since people will bear the costs whether they are corrected or not.
• B) There are no good ways to correct for the external costs.
• C) When external costs exist, the price of the good will be deceptively low leading to an overallocation of resources.
• D) External costs should only be corrected for if the correction will not increase the market price.

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Definitions:

Inference of Discrimination

Inference of discrimination refers to a conclusion drawn from indirect evidence suggesting discriminatory practices based on race, gender, age, or other protected characteristics.

Protected Class

Groups of people legally protected from discrimination by law, based on characteristics such as race, gender, age, or disability.

Termination

The act of ending an employee's contract of employment with an organization.

Sexual Harassment Claims

Legal allegations made when an individual experiences unwelcome sexual advances, requests for sexual favors, or other verbal or physical harassment of a sexual nature.